Gyan Prakash Sarawgi, Director of Sarawgi Builders & Promoters Pvt. Ltd., was detained by the Directorate of Enforcement (ED) on March 29, 2022, in accordance with the Prevention of Money Laundering Act (PMLA), 2002, in a case involving the fraudulent use of bank loans to purchase textiles and clothing. The Hon’ble Additional District & Sessions Judge under PMLA, Ranchi was presented with the accused Gyan Prakash Sarawgi, and the court granted ED custody of the accused for 7 days.
The ED launched a money laundering investigation based on three FIRs lodged by the Economic Offence Wing (EOW), Ranchi, of the CBI against M/s Sarawgi Builders & Promoters Pvt. Ltd. and others. According to these FIRs, the total amount of fraud and NPAs came to Rs. 31.24 Crore. However, it was discovered that the number of criminal proceeds exceeded Rs 75 Crore over the course of the PMLA inquiry.
Following an extensive investigation by the ED, it was discovered that bank loans were ultimately laundered into the accounts of M/s Sarawgi Builders and Promoters Pvt. Ltd., a company largely involved in the real estate industry. Investigations have also shown that the bank loans were used to build and buy real estate, which he has since sold, and that the money earned from these sales was syphoned off through several bank accounts he was in charge of.
On December 15, 2021, searches were previously carried out at the homes and offices of the defendants, Gyan Prakash Sarawgi and others, and various incriminating papers were taken. Examining these papers closely has shown that the accused and others engaged in high-value transactions in cash as well as in seemingly fictional banking channels. The situation is still being looked into further.
